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Tech Mahindra (NSE:TECHM) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Tech Mahindra Forward PE Ratio Related Terms
Tech Mahindra Forward PE Ratio Historical Data
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The historical data trend for Tech Mahindra's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tech Mahindra Forward PE Ratio Chart
Tech Mahindra Annual Data
Trend
2016-03
2018-03
2019-03
2020-03
2021-03
2022-03
2025-03
2026-03
Forward PE Ratio
11.95
15.75
14.99
9.09
14.58
19.88
22.59
18.34
Tech Mahindra Quarterly Data
2015-12
2016-03
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
14.97
11.95
15.75
15.72
17.24
14.39
14.99
13.44
13.99
14.06
9.09
15.60
15.27
14.58
17.30
24.04
23.26
19.88
14.90
26.50
22.59
27.52
23.68
21.90
18.34
18.41
NSE:TECHM vs IBM, ACN, FISV: Forward PE Ratio Comparison
For the Information Technology Services subindustry, Tech Mahindra's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tech Mahindra Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Tech Mahindra (NSE:TECHM) has a Forward PE Ratio of 21.29 as of Aug. 05, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Tech Mahindra and its competitors. According to the industry distribution chart, Tech Mahindra ranks #617 out of 1175 companies in the Software industry, placing it in the top 52.5%.
Is Tech Mahindra's Forward PE Ratio too high?
Tech Mahindra's current Forward PE Ratio is 21.29. The Software industry median Forward PE Ratio is 19.29. Tech Mahindra's value of 21.29 is 10.4% above this industry median. Based on the distribution chart, Tech Mahindra ranks #617 out of 1175 companies in the Software industry, which is below the industry midpoint. Overall, Tech Mahindra has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's Forward PE Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #617 out of 1175 companies for Forward PE Ratio. This places Tech Mahindra in the lower half of its industry. The industry median Forward PE Ratio is 19.29. Tech Mahindra's value of 21.29 is 10.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 19.29, based on 1,175 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current Forward PE Ratio of 21.29 is 10.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Tech Mahindra and its competitors. For the Software industry, the median Forward PE Ratio is 19.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current Forward PE Ratio is 21.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tech Mahindra stock overvalued right now?
Based on GuruFocus' analysis, Tech Mahindra (NSE:TECHM) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,618.99, compared to a current price of ₹1,650.00 — trading 1.9% above its estimated fair value. The current Forward PE Ratio is 21.29 and 10.4% above the Software industry median of 19.29. Tech Mahindra's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Forward PE Ratio is 21.29 as of Aug. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tech Mahindra (NSE:TECHM) Overvalued in 2026?
Based on GuruFocus' analysis, Tech Mahindra stock appears to be overvalued.
The current stock price of ₹1,650.00 is trading 1.9% above its estimated GF Value™ of ₹1,618.99.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Forward PE Ratio: 21.29
GF Value™: ₹1,618.99 vs. price of ₹1,650.00 (1.9% above fair value)
Industry Position: 10.4% above the Software median (#617 of 1175)
No single metric tells the full story. See the NSE:TECHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Process Services. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company generates the majority of its revenue from Communications & Media & Entertainment Industry. Geographically the company generates the majority of its revenue from the Americas.
82GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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